Caring for someone full-time is both emotionally demanding and financially challenging. Like many in the UK, I found myself wondering: “How much Universal Credit will I get if I get Carer’s Allowance?”
Navigating the benefits system can be difficult, mainly when numerous payments interact with one another.
In this post, I’ll explain everything I discovered about how Carer’s Allowance affects Universal Credit – and how to make the most of both.
Understanding Carer’s Allowance and Universal Credit
What is Carer’s Allowance and who can claim it?
Carer’s Allowance is a benefit provided by the UK government for people who care for someone with a disability. I was eligible because:
- I cared for someone at least 35 hours per week
- The person I cared for received a qualifying disability benefit (e.g. PIP, Attendance Allowance, or Disability Living Allowance)
- I earned less than £151 per week after tax (2025 threshold)
- I wasn’t in full-time education
The standard Carer’s Allowance rate for 2025 is £81.90 per week.
What is Universal Credit and how does it work?
Universal Credit is a regular payment that gets monthly that helps people who are on a low income or out of work.
It’s means-tested, which means my total household income and savings were considered when calculating how much I’d get.
Can I receive both Carer’s Allowance and Universal Credit?
Yes, I could claim both, but there’s a catch: Carer’s Allowance is counted as income under Universal Credit, which reduces my Universal Credit payment slightly.
However, I was eligible for something called the Carer’s Element, which helped boost my monthly Universal Credit.
How Does Carer’s Allowance Affect Universal Credit Payments?
What is the Carer’s Element in Universal Credit?
The Carer’s Element is an additional amount included to your Universal Credit if you’re caring for some person.
I didn’t need to apply for this separately – once I told Universal Credit I was a carer, they added it automatically.
In 2025, the Carer’s Element is £198.31 per month.
Is Carer’s Allowance counted as income under Universal Credit?
Yes. My Carer’s Allowance (£81.90/week) was counted as income and deducted from my Universal Credit.
But the Carer’s Element was added back in – often leaving me better off overall.
Here’s the formula they use:
Total Universal Credit amount – Carer’s Allowance income + Carer’s Element
So even though it looked like a deduction, I ended up getting a net gain from the Carer’s Element.
What are the 2025 payment rates for Carer’s Allowance and Carer’s Element?
Here’s a quick breakdown:
| Benefit Type | Amount (2025 Rates) |
| Carer’s Allowance | £81.90 per week |
| Carer’s Element (UC) | £198.31 per month |
| UC Standard Allowance | £368.74 (single, over 25) |
Note: These are individual rates; Universal Credit changes based on household circumstances.
How Much Universal Credit Will I Get If I Get Carer’s Allowance?
What factors determine my Universal Credit payment?
The exact amount I received depended on:
- My age and relationship status
- Whether I had children or a disability
- Housing costs
- Earnings (from work or Carer’s Allowance)
- Any other benefits I or my partner were receiving
How is my household income and savings considered?
Universal Credit is a means-tested benefit, which means savings over £6,000 start to reduce the payment, and anything above £16,000 disqualifies you.
Also, any other income (like earnings from a job) affects your payment through a taper rate.
What is the Universal Credit taper rate and how does it work?
The taper rate is currently 55%. This means for each £1 I made over my work allowance, my Universal Credit was decreased by 55p.
Example Breakdown: Universal Credit with Carer’s Allowance
Let’s say I’m single, over 25, paying rent, and claiming both benefits:
| Component | Amount (Monthly) |
| Universal Credit Standard | £368.74 |
| Carer’s Element | £198.31 |
| Housing Support (rent help) | £400 (estimated) |
| Total UC before deductions | £967.05 |
| Carer’s Allowance (income) | £354.90 (monthly) |
| UC Deduction (55% of £354.90) | -£195.20 |
| Total Universal Credit Paid | £771.85 |
| Plus Carer’s Allowance | £354.90 |
| Total Monthly Income | £1,126.75 |
Additional Support and Considerations
Can I still receive the Carer’s Premium or other benefits?
No – Carer’s Premium applies to legacy benefits like Income Support, not Universal Credit. But the Carer’s Element replaces it within UC.
Does Carer’s Allowance affect other entitlements like housing support?
Housing costs are part of Universal Credit, and Carer’s Allowance income affects how much UC you get overall. So yes – indirectly, it can affect the housing element.
What happens if I care for more than one person?
Sadly, you can only get 1 Carer’s Allowance & 1 Carer’s Element – still when you care for multiple people.
However, if you and a partner each care for a different person, both of you may qualify separately.
Conclusion
Claiming Carer’s Allowance alongside Universal Credit can be confusing at first, but once I understood how the two interact, I realised it actually worked in my favour.
While Carer’s Allowance slightly reduces Universal Credit, the Carer’s Element helps balance it out – often resulting in a net gain. If you’re a carer like me, it’s well worth exploring both options.
Related Article: £500 Grant for Carers – How to Apply and What You Need to Know
Frequently Asked Questions On How Much Universal Credit Will I Get If I Get Carer’s Allowance?
1. Will I be affected by the benefit cap if I get Carer’s Allowance?
No. If I qualify for the Carer’s Element, I’m exempt from the benefit cap – even if I don’t receive Carer’s Allowance directly.
2. Can I work and still claim Carer’s Allowance and Universal Credit?
Yes, but I had to be careful. My earnings had to remain under £151/week to keep Carer’s Allowance.
For Universal Credit, I was allowed to work more, but the taper rate reduced my benefit accordingly.
Quick Tips:
- Use a benefit calculator before taking a job
- Report income changes immediately to avoid overpayments
3. How do I report changes to DWP when caring for someone?
I updated my Universal Credit journal online and contacted the Carer’s Allowance Unit if:
- The person I cared for went into hospital
- My income changed
- I stopped caring for 35+ hours/week
It’s important to report changes quickly to avoid benefit overpayments or penalties.
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